VIP Industries Q4 Review - Gross Margin Improves; Demand Momentum Is Strong: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Though VIP Industries Ltd.’s topline was 10%/7% below our/consensus estimates, gross margin of 53.3% surprised positively despite raw material cost inflation. Price hike of ~4.5% taken in March, favorable product mix and rising contribution from low cost destination Bangladesh cushioned margins. While we cut our FY23E earnings per share estimates by 6% as we trim our gross margin assumption by 100 basis points amid persistent cost inflation and emerging supply side constraints as raw material at Bangladesh unit comes from China, our FY24E estimates are broadly intact. VIP Industries has ear-marked a capex of Rs 300-350 million for FY23E to further expand own manufacturing capacity at Nashik/Bangladesh. Increased self-sufficiency in manufacturing will reduce reliance on imports and not only eliminate currency volatility but also reduce freight cost resulting in margin expansion..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

VIP Industries Q4 Review - Gross Margin Improves; Demand Momentum Is Strong: Prabhudas Lilladher

VIP Industries Q4 Review - Gross Margin Improves; Demand Momentum Is Strong: Prabhudas Lilladher

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